RIght now HK still has alot of reserves to defends.
But the mechanism is same as during Asian Crisis
stock market driven down, weak economy and HK central Bank defending the peg.
Hopefully US rates peak and HK economy picks up ans resolve this problem.
But if the whole thing drag for 1 more year ...speculators will pile in just like they did for the pound and crush the HKD.
The peg helps HK to be a financial center but becomes a target during bad times.
If the HK Peg breaks it will be very ugly.
![[Image: 5sR0qWY.jpg]](https://i.imgur.com/5sR0qWY.jpg)
Whole thing may turn ugly abruptly according to this guy.
So, collapse of Hong Kong and collapse of China?
Which one first?
(29-10-2022, 06:52 PM)cityhantam Wrote: [ -> ]So, collapse of Hong Kong and collapse of China?
Which one first?
Either collapse or financial crisis. ....
You can see this problem more clear as explained in the video. The HKD hits the upper bound of the peg as the HKD weakens. The HK central bank needs to spend US$ to prevent it from rising this
occurred at the beginning of Jun 2022 when the upper bound was hit the HK central Bank needs to intervene everyday using their USD reserves.
![[Image: Z3iElLg.jpg]](https://i.imgur.com/Z3iElLg.jpg)
China can get HKD off the chart by getting all to switch to RMB...
How look at the HSI....the fall correlates perfectly with the HKD weakening to the upper bound of the peg.
This pressure is same as the situation during Asian Crisis when money was fleeing HK.
The problem is in 1998 the US Fed step in to end the Asian crisis with 3 rate cuts.
This time the central banks are probably not talking.
The mechanism put in place to stabilise is currency swap and the US has done it with a few countries. But it may not happen due to poor relations between China and US.
![[Image: mMKQQte.jpg]](https://i.imgur.com/mMKQQte.jpg)
(29-10-2022, 07:06 PM)sgbuffett Wrote: [ -> ]How look at the HSI....the fall correlates perfectly with the HKD weakening to the upper bound of the peg.
This pressure is same as the situation during Asian Crisis when money was fleeing HK.
The problem is in 1998 the US Fed step in to end the Asian crisis with 3 rate cuts.
This time the central banks are probably not talking.
The mechanism put in place to stabilise is currency swap and the US has done it with a few countries. But it may not happen due to poor relations between China and US.
NASDAQ is only slightly better!
![[Image: Screenshot-20221029-191336-com-google-an...439338.jpg]](https://i.ibb.co/hHqmjny/Screenshot-20221029-191336-com-google-android-googlequicksearchbox-edit-223468426439338.jpg)
image share ru
nan, big brother won't allow that to happen
(29-10-2022, 07:35 PM)limpeh394 Wrote: [ -> ]nan, big brother won't allow that to happen
Big brother's house also on fire; if not, this kind of "fire" won't happen. Who dare to burn small brother's house when big brother is watching
(29-10-2022, 07:35 PM)limpeh394 Wrote: [ -> ]nan, big brother won't allow that to happen
Big brother own backyard messy until citizens boycott mortgage payments in protest.if happen in another country I think govt has to step down. Look at UK 2vweeks mess, the woman kick out. China property crisis is running for 1.5yrs withe developers defaulting one by one and home buyers failing to get their homes.
To say they are lousy is too kind.
(29-10-2022, 06:44 PM)sgbuffett Wrote: [ -> ]Whole thing may turn ugly abruptly according to this guy.
you are genius on HK stock market !
(29-10-2022, 07:59 PM)forum456 Wrote: [ -> ]you are genius on HK stock market !
I think he sold off all his HK stocks at a huge loss - now try to "scare" forumers here to throw to him to buy ...otherwise why he took over Talk Cock kokee's irrational hyperventilated role of spreading disinformation on China/HK/Russia.
Something not right with sgbutt - cannot be day amd night dig up news on China! He like very free hor! He has no work meh!? He has no social life meh!? Girlfriend?!
alamak, spreading misinformation disinformation and malinformation in a forum can make a living meh?
